During a divorce, people are dealing with a lot of stress and making some difficult decisions. On top of this, they are transitioning from one household into two. Often, one of the main sources of contention and concern during this time is the financial standing of each party.
Under such overwhelming circumstances, divorcing spouses could wind up making some missteps and poor decisions out of self-preservation. However, these financial mistakes could backfire and end up causing serious problems. Below, we examine a few such mistakes that you will want to avoid when you are dividing assets in a divorce.
Mistake #1: Hiding assets
Hiding assets or intentionally undervaluing them in legal documentation is not only against the law, it can leave a person exposed to some serious penalties. In other words, don’t hide or attempt to conceal assets. And if you are concerned that your soon-to-be ex might try to hide assets, you can consult a financial analyst who can look into any missing or suspicious information.
Mistake #2: Spending a lot of money
Like hiding assets, spending a lot of money during a divorce could also be a big mistake. Intentionally spending down money in a joint account, selling property, changing bank accounts or otherwise getting rid of money in an effort to keep it from the other party in a divorce can result in serious penalties. To protect the money and property involved in the divorce, parties can file for a Temporary Restraining Order to prevent dissipation of assets.
Mistake #3: Agreeing to something without understanding your options
Before you agree to anything like spousal support or property division, make sure you do so only after you understand your options and rights. Think about tax implications, long-term benefits or consequences and property division laws in North Carolina. Doing so can help you make informed decisions with which you can be confident.